If we see a huge rise in interest rates, millennials and Gen  Z home buyers will not be able to catch up and afford a first time home purchase. The housing market is mostly comprised of millennial home buyers at the moment.

Home value annual rates sky-rocketed in 2021. Because the growth was in the double digits, it is unsustainable for the housing market. It will become a balancing act of either earning a higher income, interest rates staying low, or home prices will have to depreciate, in order for people to continue to be able to buy homes.